Question: Question 3: A vending machine company sells soft drinks at $1.50 per bottles per week. At that price, the quantity demanded is 2000 bottles per

Question 3: A vending machine company sells soft drinks at $1.50

Question 3: A vending machine company sells soft drinks at $1.50 per bottles per week. At that price, the quantity demanded is 2000 bottles per week. In order to increase sales, the company decides to decrease the price to $1, and sales increase to 4000 bottles. Calculate price elasticity of demand. Question 4: Given the following demand function: QB = 110 3.3P Calculate the price elasticity for $1 change in price at initial price level $20

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